Germany to spend up to 16 billion euros on refugees next year | ReutersEU

According to this breaking Reuters story, Germany’s federal states and municipalities could face costs of up to 16 billion euros (11.47 billion pound) next year to deal with the refugee crisis.

Source: Germany to spend up to 16 billion euros on refugees next year | Reuters

In my experience, in this type of situation, I would expect early estimates to be exceeded by a massive margin.

Whilst the German Federal Government has earmarked some EUR 5 billion in contingency funds, this is a fraction of the headline requirement.

With Germany slow to reflate her economy, it’s possible that German taxes will now need to increase taxes to pay for the cost of the refugees – I fear that this might quickly turn Germany’s voters against Angela Merkel but would expect the German Nationalist Party to turn this story to their advantage.

 Thoughts?

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